GREECE-focused Energean Oil & Gas has secured licence agreements for two Greek blocks with two project partners, Canada-listed Petra Petroleum and Greece’s Trajan Oil.

Energean will work with Petra on the onshore Ioannina block, covering 418,700 hectares in Epirus, in Western Greece, in fields the company says has analogues with proven oilfields in Albania and Italy.

The companies are planning a €32.4 million investment program for three planned exploration phases over seven years, with Energean to be operator with an 80 per cent stake.

The program will consist of 2D seismic data reprocessing, geological surveys and new seismic data acquisition in the first phase and the drilling of two wells during phases two and three.

Energean will hold a 60% operating stake in the offshore Katakolon block, covering 54,500 hectares offshore the Northwestern Peloponnese.

Katakolon is a proven oilfield from an exploration well drilled in 1981 by the state owned company DEP-EKY, with Energean estimating 5 million barrels of oil could be recovered.

The companies will invest €15.6 million over five years during two exploration phases, consisting of 2D and 3D seismic data reprocessing, field development and environmental assessment studies in the first phase and new seismic data acquisition if required, as well as the drilling of a production well.

The development plan also includes drilling from an onshore location by means of Extended Reach Drilling (‘ERD’).

Both licences expire in 30 years and both contracts are subject to Greek Parliament ratification.

Energean Oil & Gas chairman Mathios Rigas said the company had been awarded two out of three blocks in an open door licencing round.

“Energean and our staff are ready to meet the new challenge of working towards achieving oil and gas production from new areas in Greece for the first time in 33 years,” he said.

“The implementation of our new investment program which, including Prinos, will total more than €200 million over the next few years, will demonstrate that Greek companies are well positioned to both support and benefit from the recovery of the Greek economy.”

The company is the only hydrocarbon fields operator in Greece, having produced over 115 million barrels of oil and 850 million cubic metres of natural gas from the Prinos and South Kavala offshore fields.

The news was followed by Energean’s announcement that it had teamed with London-based Mediterranean Oil & Gas in a bid for three fields offshore Montenegro.

The companies aim to explore for and ultimately produce hydrocarbons in offshore areas 4118/05, 4218/30 and 4118/10, with Energean Oil & Gas to hold an operating 60% stake in the fields.

The Government of Montenegro launched its first round for production concession contracts in August 2013, offering 13 blocks covering a total of 319,100 hectares in the Adriatic Sea.

Bids for the blocks closed on 15 May.